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If you're like
most small ecommerce
businesses, you're
likely to write your
own marketing copy.
Be aware that this
is a highly
regulated area
that could result in
substantial
liability.
What is Marketing
Copy?
Wikipedia defines
"copy" as
written material, in
contrast to
photographs or other
elements of layout,
in a large number of
contexts, including
magazines,
advertising, and
book publishing. In
advertising, web
marketing and
similar fields, copy
refers to the output
of copyrighters, who
are employed to
write material which
encourages consumers
to buy goods or
services.
Web copy has one
major advantage over
offline copy - it is
interactive.
Hyperlinks provide
you with powerful
tools to lead a
potential customer
through a pathway
designed by you
which ultimately
leads to a
conversion to your
call to action.
Trap No. 1:
Failure To
Substantiate Claims
Before Publication
When you write
your own marketing
copy, you
necessarily make
certain "claims" -
statements upon
which a consumer may
reasonably rely in
making a purchase
decision. In so
doing, you're facing
another legal
pitfall.
Legally, claims
are extremely
important. The
Federal Trade
Commission Act, 15
USC Sec. 41-58 and
accompanying
regulations prohibit
"unfair or deceptive
acts or practices".
Unfair or deceptive
acts or practices
include claims that
are not
substantiated before
the claim is
publicly
disseminated.
The FTC nailed
this point home with
their adoption of
the "reasonable
basis requirement":
- "First, we
reaffirm our
commitment to
the underlying
legal
requirement of
advertising
substantiation
that advertisers
and ad agencies
have a
reasonable basis
for advertising
claims before
they are
disseminated."
- "The
Commission
intends to
continue
vigorous
enforcement of
this existing
legal
requirement that
advertisers
substantiate
express and
implied claims,
however
conveyed, that
make objective
assertions about
the item or
service
advertised."
- "Objective
claims for
products or
services
represent
explicitly or by
implication that
the advertiser
has a reasonable
basis supporting
these claims."
- "These
representations
of
substantiation
are material to
consumers. That
is, consumers
would be less
likely to rely
on claims for
products and
services if they
knew the
advertiser did
not have a
reasonable basis
for believing
them to be
true."
- "Therefore,
a firm's failure
to possess and
rely upon a
reasonable basis
for objective
claims
constitutes an
unfair and
deceptive act or
practice in
violation of
Section 5 of the
Federal Trade
Commission Act."
So review your
ads carefully, and
be sure that you can
substantiate and
back up your ad
claims.
Here are some
examples of claims
and the related
challenges regarding
substantiation and
back-up:
- If you claim
"best value",
understand that
it's a bold
promise -
essentially,
you're promising
that your offer
is worth more
than the asking
price - if
you're going to
make this claim,
you'd better
provide the
proof on your
site.
- If you claim
"we're no. 1",
you need to be
very specific
regarding how
you determine
no. 1 - no. 1 at
what? - in gross
sales, in sales
growth for a
specific period,
in the number of
widgets sold?
- If you claim
the "latest and
greatest", "next
generation" or
words to that
effect, you
should
substantiate how
the claim is
true - explain
specifically how
you justify the
claim in
relation to
other
competitive
products on the
market.
- If you claim
"user friendly"
or
"easy-to-use",
you need to be
specific
regarding
substantiation
of specifically
how much time a
certain task
routinely takes,
exactly which
steps are
automated, etc.
- If you offer
a "risk-free
guarantee",
understand that
even a free
evaluation is
not completely
risk-free
because the
evaluation takes
time for the
customer to
evaluate - time
is money,
so-to-speak, so
a better
approach is to
promise an
unconditional
refund, no
questions asked.
Trap No. 2: Avoid
Untrue And Deceptive
Claims
In addition, be
careful not to make
untrue or deceptive
claims. Certain
types of claims
should be avoided
altogether,
including:
- never claim
that you have a
cure for
anything - not
even large drug
companies with
products that
have been the
subject of years
of testing will
make such a
claim, so you
shouldn't
either;
- never
specify a level
of revenue or
profits that a
user will
achieve, even if
you or another
purchaser has
achieved a
specific level
of revenue or
profits -
remember the old
adage, "your
mileage may
vary";
- Never
promise specific
results - again
"your mileage
may vary".
The FTC has
special rules
governing any use of
the term "FREE"
(or similar words to
that effect), which
the FTC believes is
frequently used in
an untrue or
deceptive way.
Similar words to
"free" include:
- Buy 1-Get 1
Free;
- 2 for 1
Sale; and
- 50% off with
the purchase of
2.
According to the
FTC:
"[t]he public
understands that,
except in the case
of introductory
offers in connection
with the sale of a
product or service,
an offer of 'Free'
merchandise or
service is based
upon a regular price
for the merchandise
or service which
must be purchased by
consumers in order
to avail themselves
of that which is
represented to be
'Free'. In other
words, when the
purchaser is told
that an article is
'Free' to him if
another article is
purchased, the word
'Free' indicates
that he is paying
nothing for that
article and no more
than the regular
price for the other.
Thus, a purchaser
has a right to
believe that the
merchant will not
directly and
immediately recover,
in whole or in part,
the cost of the free
merchandise or
service by marking
up the price of the
article which must
be purchased, by the
substitution of
inferior merchandise
or service, or
otherwise."
The UCC provides
that you
automatically make
the implied
warranties listed
above for products,
unless you properly
disclaim them. So,
if you want to avoid
these unintentional
implied warranties,
you must disclaim
them in both your
Terms of Use and in
your Customer
Agreement.
Express
warranties are
promises that are
explicitly offered
to a purchaser,
whether they appear
in advertising, a
formal contract or
certificate, or some
other form.
The most likely
way to create an
unintended express
warranty is to
provide a demo or a
product sample on
your website. The
UCC provides that a
demo or product
sample would create
an express warranty
that your products
conform to the demo
or sample. You may,
however, disclaim
these warranties.
So, again, if you
want to avoid these
unintentional
express warranties,
you must disclaim
them in both your
Terms of Use and in
your Customer
Agreement.
Conclusion
In summary, be
aware that what you
say in your
marketing copy is
heavily regulated.
You need to be
careful not only to
substantiate
ad claims before you
post them to your
site, but also use
certain key terms
with great care so
as not to mislead or
deceive consumers.
Copyright © 2008
Chip Cooper
This article
is provided for
educational and
informative purposes
only. This
information does not
constitute legal
advice, and should
not be construed as
such.
WANT TO USE THIS
ARTICLE IN YOUR
EZINE OR WEBSITE?
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article in its
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Chip Cooper is a
leading intellectual
property, software,
and Internet
attorney who advises
software and
ecommerce businesses
nationwide. Chip's
25+ years of
experience include
20 years as Adjunct
Professor of
Computer Law at Wake
Forest University
School of Law. Visit
Chip's
digicontracts.com
site and
download his FREE
report, "12
Sure-Fire Ways Your
Website Can Get You
Sued", and also
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"Do-It-For-Me"
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